AltiGen Communications, Inc. Announces Intention to Trade on OTCQX Market
SAN JOSE, CA – March 5, 2010 – AltiGen ® Communications, Inc. (NASDAQ: ATGN), the leading provider of integrated Microsoft-based Unified Communications solutions, announced today its intention to seek the voluntarily delisting of its common stock from the NASDAQ Capital Market and relist on the OTCQX U.S. Premier (OTCQX) over-the-counter market, operated by OTC Markets, Inc. The move remains subject to the listing approval requirements of the OTCQX. AltiGen expects that its stock will continue to trade under the same ticker symbol (OTCQX: ATGN).
AltiGen has notified the NASDAQ Capital Market of its intention to voluntarily delist its common stock. AltiGen anticipates deregistering its common stock with the Securities and Exchange Commission and suspending its reporting obligations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In the meantime, AltiGen intends to continue to fulfill its reporting obligations under the Exchange Act and to provide shareholders with current information by filing ongoing disclosure pursuant to OTCQX rules, which include requirements to prepare quarterly and annual financial statements and make current information available pertaining to material events.
AltiGen’s Board of Directors decided to delist its common stock as part of a broader effort to reduce costs and improve financial results. AltiGen has implemented cost reduction strategies to reduce its selling, general and administrative expenses and continues to focus its efforts on cost control. The Board of Directors concluded that the costs of maintaining its listing on the NASDAQ Capital Market and continuing to maintain its reporting obligations under the Exchange Act outweigh the benefits to AltiGen and its shareholders. AltiGen expects significant cost savings annually from these changes when they have been fully implemented.
Specific factors considered by the Board of the Directors included:
· the ongoing expenses that AltiGen would incur in complying with its obligations under the NASDAQ Marketplace Rules;
· the substantial management time and effort required to comply with these obligations;
· the limited capital available to AltiGen in the public equity markets;
· the limited trading volume and liquidity of the common stock;
· the possibility that AltiGen would be involuntarily delisted from the NASDAQ Capital Market due to failure to comply with continued listing standards;
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· the challenges associated with implementation of a reverse stock split or other activities required to regain compliance with the minimum bid price; and
· the impacts of these changes on suppliers, customers, employees, stockholders, and others having relationships with AltiGen;
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